East Java governor rejects plea to relocate sugar factories<\/p>\n
Ainur R. Sophiaan, The Jakarta Post, Surabaya<\/p>\n
East Java Governor Imam Utomo has rejected a plea by the central
\ngovernment to relocate a number of loss-making sugar factories to
\nother provinces.<\/p>\n
\"The proposal was unrealistic as East Java supplied 45 percent
\nof the country's domestic demand for sugar,\" the governor told
\nreporters after a meeting with sugar producers throughout the
\nprovince on Friday.<\/p>\n
He said the proposal was initially raised by then minister of
\nindustry and trade Rahardi Ramelan during the presidency of
\nAbdurrahman Wahid. The proposal was renewed by incumbent Minister
\nof Industry and Trade Rini M.S. Soewandi.<\/p>\n
The central government's proposal has drawn complaints by
\nlocal sugar farmers, who fear possible difficulties in marketing
\ntheir products if the factories were relocated to other
\nprovinces.<\/p>\n
Currently, there are a total of 33 sugar plants in operation
\nthroughout the province, scattered in the regencies of Pasuruan,
\nProbolinggo, Sidoarjo, Nganjuk and Mojokerto.<\/p>\n
Imam did not mention the number of sugar plants suffering the
\nfinancial losses. However, sources said it was nearly half of the
\ntotal figure.<\/p>\n
The governor said that it would not be that easy to move the
\nsugar plants as there were certain requirements to meet before
\nthey could proceed with the relocation.<\/p>\n
\"There must be a feasibility study on the appropriateness of
\nthe new locations and the availability of sugar farmers to
\nsupport the operation of the new factories,\" he said.<\/p>\n
He admitted that some of the factories still suffered losses
\ndue to increasing operational and production expenditure.<\/p>\n
\"The factory owners have to take the necessary steps to cut
\nexpenditure. We (the East Java administration) will also help
\nthem to recover,\" the governor said.<\/p>\n
He said his administration was now taking an inventory on
\nproblems that the sugar plants have, including their financial
\nstatus and the quality of their products.<\/p>\n
Commenting on the increasing presence of imported sugar in
\nEast Java, the governor said the administration would maintain
\nthe policy of banning the sale of imported sugar in the province.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/east-java-governor-rejects-plea-to-relocate-sugar-factories-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}